One of the leading crypto-exchange platforms with HQ in the US – Coinbase has declared that it is planning to create a supportive infrastructure for the ERC20 tokens which are based on Ethereum’s blockchain sometime in the next months.
The San Francisco-based company said it will support Ethereum’s ERC20 technical standard on its platform in the coming months, according to a blog post the firm published Monday.
“We’re excited to announce our intention to support the Ethereum ERC20 technical standard for Coinbase in the coming months. This paves the way for supporting ERC20 assets across Coinbase products in the future,” the blog post reads.
We’re excited to announce our intention to support the Ethereum ERC20 technical standard for Coinbase in the coming months.
— Coinbase (@coinbase) March 26, 2018
What is ERC20?
ERC20 is the standard used by Ethereum tokens and smart contracts. It serves as an interface to which anyone wishing to issue a token or write a smart contract must comply. There are a total of 59,948 Ethereum contracts out there. Although Ethereum’s market share has shrunk, they almost single-handedly dominated the ICO bull market of 2017.
What Does This Mean?
The announcement from Coinbase has implications for the company’s entire family of products.
In regards to GDAX — Coinbase’s sister exchange — the company has noted that “the GDAX team will wait for additional regulatory clarity before [deciding] which ERC20 assets to support on GDAX.” However, ERC20 support will afford GDAX the ability to securely recover customer ERC20 assets accidentally sent to the exchange’s Ethereum addresses.